What is the price of a $50,000, 182-day T-bill on its issue date if the market rate of return on this date was 6.875% simple interest?
A) $48,342.77
B) $48,262.15
C) $48,285.96
D) $48,148.15
E) $48,320.53

Question

Quizplus · Accepted Answer

The correct answer is A.The price of the T-bill is calculated as follows:Price = Face value / (1 + (Market rate * Days to maturity / 360))Price = 50,000 / (1 + (0.06875 * 182 / 360))Price = 48,342.77

What Is the Price of a $50,000, 182-Day T-Bill on Its